KB Home Forming Mortgage Firm for Buyers With Nationstar

Jan. 22 (Bloomberg) -- KB Home, a Los Angeles-based
homebuilder, is forming a home-loan company for its buyers with
Nationstar Mortgage LLC.

The entity will be known as Home Community Mortgage LLC,
the builder said today in a statement. KB Home made Nationstar
its preferred lender in March after MetLife Inc. said it would
shut its origination operation. Nationstar, based in Lewisville,
Texas, began accepting loan applications in May.

“Creating Home Community Mortgage with Nationstar is the
natural progression of our successful alliance,” Jeffrey
Mezger, KB Home’s president and chief executive officer, said in
the statement. “Nationstar’s performance as KB Home’s preferred
mortgage lender has already resulted in more consistent
execution.”

Nationstar, which has offered financing on-site at KB
Home’s communities, has a portfolio of about $425 billion and
more than 2.5 million customers, according to the statement.
Nationstar will continue to operate as KB Home’s preferred
lender until later this year when Home Community Mortgage begins
operating, the builder said.